Will Any Stimulus Payments Or Other Economic Impact Programs Impact My 2020 Tax Obligations?

Under the CARES Act, a stimulus is not to be counted as income to your tax return.

How Could Payroll Tax Deferment Impact The Amount Owed In 2020?

Under the CARES Act, the employer can defer payment of the employer portion of the social security tax and the FICA tax and not have to send that in each time with the employee taxes. However, he also cannot count that as a deduction in 2020. Those have to be paid in by April 2021, so they will impact the 2021 filing.

How Does The Corona Virus Relief Bill Affect Any Withdrawals From My Retirement Account And/Or IRA When It Comes To My Taxes For 2020?

Normally, if you are under 59 1/2 and make a withdrawal from your IRA or 401(k), there is a 10% penalty for early withdrawal. The CARES Act has released that and a person who qualifies can withdraw up to $100,000 without that 10% penalty. There are restrictions on who may withdraw under those rules. Primarily, their withdrawal must be related to the COVID pandemic. If you are over 70 1/2, there is a required minimum distribution each year. However, that minimum has been relaxed for 2020 and possibly for 2021, so you do not have to withdraw a certain amount from your IRA.

Why Is The 2020 Tax Filing The Most Opportune Time To Hire An Experienced Tax Attorney To Help Me With My Case?

You should really consult with a tax professional for the 2020 season for several reasons. The 2018 Tax Act changed a lot of rules and the CARES Act changed many more rules. When the IRS saw that act, they also enacted many regulations that are confusing and must be handled carefully to avoid making mistakes.

For more information on Stimulus Payments And 2020 Tax Filings In SC, a free case evaluation is your next best step. Get the information and legal answers you are seeking by calling (864) 271-7940 today.

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